Powder River Reports Progress on Projects

Powder River Basin Gas Corp.

Powder River Basin Gas Corp. announced the following updates on its current projects.

The Weesatche project in Goliad County, Texas, has one well--the J.P. Green #1--that is currently producing 1,600 mcf gas per day. There are four additional wells that have had drilling completed on them, but heavy rainfall has delayed their hook-up. The Justen #1, #2, and #3 wells will be put in production at 1,600 mcf per day. The Dohman #1, a shallow Frio well, will be put in at 400 mcf per day. Powder River Basin Gas Corp. anticipates having these wells hooked up by month's end.

Also in Texas, the Brookshire Salt Dome project is also delayed due to heavy rainfall. Powder River has since resumed well site engineering on this project and is currently scheduled to start drilling later this month. The Polk County project is fully completed and is in production.

The Springhill, La., project currently has 14 wells in operation. Current oil production is 24 BOPD. Powder River has not yet caught up with the salt water to reach full oil production. On the Munro, La., project the wells are completed and are waiting on electricity, which is day-to-day.

Additional time is required on the rework of the B-11 well in the Leonard Heirs project, also in Louisiana. When pressure was tested, a hole developed in the casing. The well had to have a squeeze job, meaning the casing was cemented and forced in formation. Cementing has since been completed and partially drilled out. Drilling is expected to be completed later this week. If tests hold, equipment will be run into the well and should be in full production by week's end. The crew will then move onto the B-16 well. The site of B-16 is ready for a rig to move on.

In Oklahoma, Powder River has two projects to report updates on. The Osage project currently has seven wells in production. The eighth well is currently being reworked.

On the Lincoln project, four additional disposal wells are being completed and require sanction from the Oklahoma Corporation Commission. Powder River anticipates that these will be completed and in full operation by the end of the week, at which time production will be increased. Current production on this property is approximately 32 BOPD and will be increased upon the completion of the expanded disposal system. The company is currently targeting a completion date on the first phase of this project by the end of September.

Production as of June 30, 2006 is estimated at just over 300 BOPD equivalent. Production increases on a weekly basis as new wells are brought into service.

"We are pleased with the progress that Powder River Basin Gas Corp. is making in the development of these projects,” said Powder River Basin Gas Corp. CEO Brian Fox. “We expect to be on schedule for completion by the end of September of this year.”

Powder River Basin Gas Corp. is active in the production, acquisition, and marketing of crude oil and natural gas properties.